Time to discipline accountants
Prime Minister Narendra Modi will do a great service to the nation if he is able to put in place the National Financial Reporting Authority (NFRA) to rein in the Institute of Chartered Accountants of India (ICAI) for its perceived failure to enforce discipline. The Prime Minister is clearly upset with the chartered accountants' role in the lack of corporate governance and financial misconduct of corrupt politicians, businessman, and NGOs. While Companies Act 2013 provided for NFRA as a regulatory agency for audit, accounts and financial reporting, Section 132 of the law has remained on paper as the rules are yet to be notified. It seems some powerful, politically-connected ICAI members have been able to put the issue in cold storage for the last three years.